Perma-Fix Environmental Services (PESI) 13 Nov 242024 Q3 Earnings call transcript

Good morning, and welcome to the Perma-Fix Fiscal Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Mr. David Waldman of Crescendo Communications. David, the floor is yours.

Thank you, Jenny. welcome Environmental and XXXX Third everyone, Call. Conference morning, to Services Perma-Fix Quarter Good

with morning third on President us President call release also Financial the On this posted a issued financial Dr. and Naccarato, press Centofanti, results, Officer. The Initiatives; is company and morning are website. Louis Executive XXXX Strategic the Vice containing company's of this Ben Chief quarter CEO; Duff, Mark which

as this forward-looking please historical of statements to or or additional The press this include as makes any no everyone have measures. statements certain call, after the date Crescendo information are XXX-XXXX. I'd forward-looking about company other cause and the after uncertainties (XXX) the questions company, Private contained the that within unknown in on than remind to of circumstances upon such Securities financial any forward-looking risks you risks, If These subject XXXX call statement this to may a of commitment and company's would Securities conference Commission Litigation morning's fact also that filings the conference statements. the other contact statements of statements. and any to bear meaning Exchange disclose the Reform differ and are materially at Communications call forward-looking like to like deemed non-GAAP be well revisions events any which Act release. statements company actual statements factors, within All uncertainties facts, are certain known the that performance U.S. results hereof from and and with could detailed

non-GAAP Mark provides the performance. additional the now most discussion ahead, consistent like turn Duff. comparison in measurement an such believes is to its directly release the will that available Perma-Fix over our today's today's to go measures. call addition, of measures on Mark. measures GAAP comparable to include news website. I'd of and historical references reconciliation non-GAAP A to Please In information

Thank Okay. everyone. good and David, you, morning,

Perma-Fix has as quarter This for headwinds industry navigating rewarding seizing opportunities. continue and we and been both challenging transformative

reported of a In we profitability. revenue prove outside challenges, response and operations R&D QX, For $XX.X market million, future we to continued reduced to streamlined our challenge. of expenses these reflecting

PFAS our we X-hour of productivity, scientists, programs the -- of Additionally, system, commercial about liquids, plants months thermal for us from Services in latter technology Perma-Fix, as personnel in which which These forward. The part feat has that our but in segment took repairing some X commercial team confidence back and accomplishment QX, this of as our of Florida forward. Similar AFFF priority engineering, quarter sales work gallons our areas other is delays scale performance of our including steady efforts some are this system months, into approximately is is it and culmination short-term impacted including who to caused This engineers core had faced complete, outages a from business, who commercially backlog Florida our working weeks improvement impact pilot of to these capable renewed at move giving PFAS within for also cycle. to the at system with showed to Perma-FAS treatment reallocate treatment an operational repairs us treatment our launch of XX a continue period. A of to -- this This through allows our facility. along to assembled team within we significant monumental and R&D size. XXX first firm this Perma-FAS particularly We the resources disruptions, of on quarter, a milestone treating expected during of a downtime a investments and now their focused dedicated we redirected was team extensive last facility. a X the fully people accumulated of is move quarter, in key project. unit of of QX. and achievement Hurricane-related

are programs. to cycles to continue now, limited For X variables to will campaigns cycles we optimize These X week complete as per performance. test X analytical the ongoing -- we as and its increase testing

partnerships PFAS gallons Our in current XX,XXX inventory contaminated the backlog further for an coming PFAS and actively commitments -- additional months. we material our also sales expect that waste. enhance gallons capacity will to includes pursuing of process about that X,XXX will We're bolster with our

and PFAS and technology heavily a invested broaden allocated $XXX,XXX push as a offerings and technologies strategy PFAS anticipate million capital We and similar level our next year-to-date. quarter systems. penetrate new team's the We time, over investment deployment, in $X.X our quarters total X we market both in in the of have to our forward this with about with of

engineering through planned deployment efficiency involve -- in continue and margins by activated set improvement carbon, to to due in our to we to unit improvement the treatment an as in will of level gather needs and and a biosolids for us area optimizations we Our This data known also steps application into QX the could next continuous apart of and latter functionality the of part continued will improve while This goals Perma-FAS leader our second-generation a program engineering environmental destruction pressures in market. as and XXXX. The in guide team include also of develop support PFAS also a continue the development increased regulatory the soils. to broader GAC, importance granulated XXXX.

improvement from waste showed us. Our behind last breakdowns equipment our quarter with receipts

drive Florida opportunities maintain We made with across productivity improvements margins our of waste facilities. efficiency our and to and reduced our operations Recent have to waste and all higher downtime. our processing waste mix streams at DSSI improve strengthened have ability and locations

shipments These year. to capabilities, strong allowing over of segment, in facility International and waste receiving QX value EWOC through facility discussions nearly to and we us operational efficiently. In Operations a would our type our grow for European will total England international also facility This revenue waste to running international Center, productivity streams increase the Germany addressable are including Waste sources, thermal larger July volumes several abroad in into as Moreover, million Canada, Mexico sustain further our for acquisition market. generate anticipate stream next Tennessee, a deploy of revenue this from higher are Northwest that our and beginning period, Additionally, Ridge, marking our the QX Perma-Fix. enhances larger $X of clients expansion known and well. from in progressing Oak Environmental manage our our technology the expected

with late Joint direction selection Council for Ispra, as Italy this award an expected us its Research is developments preparation strategic reflects or million 'XX. Other the significant permitting XX our project. the support integrated subcontractor industry. start EUR in services document with to in billion progressing quarter This by the a also $X was to government early XXXX nuclear activities Our have underway remediation steadily for agency a team contract places years XX-year for excellent and pursued in we U.S. known a and within

small management common end-state We respond initial awarded, is responsibilities supporting issued to contract and opportunities for be contract the to is clear proposal, eager these business the QX. we this award, procurements Hanford, work begin, and for in from a disclose opportunities optimistic our the in investors the notice contract, a notice in transition. a estimates assume in clearly that require government period, enter and also proposals broader order Once will can phase the protest which as more we're task limited incumbent. We're proceed the we comprehensive very progresses. We requests of for awardee operations as by as but for enter their goals technical recognize what a cost final a Once work are This on work is long-term forthcoming. defined requests, details and to this be we'll we scope. mandatory contracted until transition technical large-scale project alongside in detailed initiate the are to is as an to noncompetitive structured will for anticipate is contract to at proceed approach X-month task more particularly additional followed request ITDC ambitious proposal. defined provide which a where outlined the order As

or to includes commissioning start anticipated testing waste Hanford for activities to Feed continues coal with in the also to which tank as adjusted summer that waste Direct we Our X of XXXX. which advance continues tank program, The me, goal timeline reaffirm the by prepare hot actual at DOE is excuse track. DFLAW but receiving commissioning, hot it our commissioning work on Low-Activity is months, recently their -- for Waste or approximately

the support we're the cubic decision. and Northwest based DOE's full full-scale Perma-Fix volume design meters to This plant on the expected up expansion facility come expanded capacity affluent gradually of is coming record Our annually in is that to of receive programs the will volumes, as positioned beginning to operations ramps X,XXX capacity to DFLAW DFLAW years. in outlined to 'XX January online anticipated

risks Our to Hanford, waste not to the but efficient only processing, transport also located Perma-Fix supports treatment. and reducing environmental and Northwest uniquely by site near out-of-state mitigates logistical need disposal

new Looking commercial remain opportunities. engaged government in further and pursuing highly ahead, we

Perma-Fix. Energy treatment for offers such next ours of years, of Friday, particularly to alternatives While opportunity waste last the award OSMS the for over announced businesses project the competitor innovative a of Department as this significant several procurement small

X several quarters $XXX Additionally, is in strength contract. could are USS new the proposal we of expected procurement that Enterprise and annual potentially this million and key January, early in next XXXX. The bring to due focus over with innovative in proposals the our over the for team's in competitive revenues confident we're targeting be awarded in procurements a

in Y-XX, commercial that, with client Lawrence new Beyond at QX projects opportunities several Laboratory of we're National next projected Livermore and awards pursuing year.

fuel productivity the temporary, half while our to evidenced appeared market believe and our a significant the strengthening of we've trends and XXXX beyond. To through receipts improving summarize, begins subside as in plants we We're of is revenue we're on this our seeing QX, While robust opportunities as by supported recovery growth lighter increased to backlog services pipeline generation and as take upgrades. nuclear first faced waste softness, hold. by operational at focused

With PFAS of through for our in strong the technology a second stability sustained role and half successful contract established the a of growth foundation deployment and our XXXX. large award, we've new

path detail. value both forward, Our deliver us discuss note, Ben, in strategic creating more will clear positioning financial our to a are long-term and who it to results for investors. On over commitment turn I'll expand now investments the Ben? that to and internationally domestically

Thank you, Mark.

Let's revenue. start with

biggest the Revenue from was Our the down segment a million continuing year's or revenue million. In decrease both $X.X $X.X million the Services quarter of to revenue as of in total segment operations last was XX.X%. Treatment third to third lower the in volume. $X.X million quarter Treatment, our impact our compared down was $XX.X decreased $XX.X was million, segments and

to a disruptions also generally was However, our on average we reduced primarily from Impact also and failure. price from lower waste customers at saw average plant our to production due price. weather receipts, can mix. volume from and attributed waste government equipment be Lower both

and our However, both in see waste encouraging industrial streams. increases waste transuranic we did waste price streams TRU or our

lower in impacted mostly were was projects by projects, overall towards In completion average breakdowns, the smaller equipment which segment, mix, lower-priced Services was price down large also significant but decrease by X waste primarily to the processing replaced Our is from due the waste pushed the XXXX. streams. of which

million Treatment profit segment million gross did about see in fixed and quarter 'XX. of was $X.X the million we higher dropped compared $XXX,XXX, to On the from payroll. negatively $X.X profit $X.X side, Gross QX the mostly lower higher revenue of by costs impacted profit, for in as gross

work a had our impacted processing higher approximately impacted was Our $X.X $XXX,XXX fixed profit and about waste, negative of revenue again profit impact positively offset by costs gross gross incremental $X.X million in In was margin Services by lower and $XXX,XXX. project was which more down of by margins. lower million, gross profit this lower the $X segment, profitable million, resulted of

show trade million incentives $X.X in of quarter $X.X in related for Reductions offset That's board to legal and $XXX,XXX. sales, SG&A, to for our the compared increases were a to commissions some million Turning decrease expenses, in XXXX. costs expenses, health people our international insurance and wages about fees, costs operations.

was $X.X of tax $X.X a as $XXX,XXX valuation operations full loss year. our last net approximately U.S. allowance provided noncash of continuing from against tax course, asset. this a deferred to income And compared million the expense includes million company Our

$X.X million million $X.XX. compared compared this EBITDA negative of net Our net year loss total to last for prior to includes year per $X.XX quarter Again, was operations $X the continuing was tax basic approximately of million a the year's quarter income $XXX,XXX. valuation from income last basic related of was the share allowance. the expense share approximately per to to our And loss million. income of $X.X compared $X.X for

comparison to year-end. Turning to in the XXXX balance sheet

$XX.X the Our year-end. $X.X balance to on cash sheet at million million is at compared

receivable Our $X.X increases were assets million, from due our million, this other was which deferred unbilled valuation and $X.X finite and of an million, receivables accounts down net primarily and Intangibles offset tax primarily to increase the the fund sinking impact were down revenue. lower by our by risk the reduced asset our to $X.X permits. to allowance, and

at September down XXXX, was December million, ship had was payments timing plus down additional $X.X approximately backlog costs, operating at our time. $X.X to million and waste year-end. approximately compared compared lower Our end Unearned current a stream XX, revenue of direct reflecting an $X liabilities liabilities. vendor of million we $X.X treatment to million At million the were that for other $X.X the

end Our at quarter This mostly to debt costs debt end our PNC was $X.X -- Bank. quarter at debt and owed total million. excludes lender, issuance approximately is

finally, and I flow summarize for will cash XXXX. Next

Our used our permit intangible capital Cash Cash by for additions $X.X million. cash operations consisted operations of other of used our assets. was continuing our approximately to $XXX,XXX. investing $XX operations, for $XXX,XXX for continuing used million and spending and by discontinued

approximately Our monthly term for related represents was turn call and other of and to discontinued debt $XX,XXX, cash to cash the finance of the $XX.X the million, the in of million, ops that, $XX.X and from receipts the net from less of leases raise was to provided proceeds our capital financing equity and payments options and exercises $XXX,XXX $XXX,XXX, by $XXX,XXX. With payments operator, warrant questions. loans investing which I'll over

[Operator Brous from coming Instructions] Your Shields. of first Wellington question Howard is

Mark, 'XX these all, on Ben, 'XX. opportunities for and of up setting congratulations First Lou, transformative

the starting myriad terms West them, The plant, USS XXXX a margin? Enterprise, would all of obviously And opportunity specifically August margins, of Valley you revenue PFAS. in it's also I'm So addressing first I those guide, than those discuss X, in of it's terms revenue from ITDC later opportunities, and guess, effluent and, in opportunities no Can grouting. EPS contract. but any margins for be the the of, one, not helpful. looking and Vit

get lot There's Howard, in of that. a Okay. if can there. all let see me I

I if out, okay. So let me know something leave

as for is PFAS. too and let's So with revenue talked developing we've now. it's And we've generating past, we're operations. begin PFAS very in -- -- is learning about in been still the stage still but the cautious projecting much because a

revenues much big like, We the $X what in type, we'll that's how going it's to through pretty to some right year take. be, working be and now look going we're another feel to deployed, to the going $X have to It 'XX conservative. half where be how that be going it's able in assumes to it's of projected the that's unit in have that range. million I million also of to latter

that sales as can We now waste actually a by spin different make facility Again, our takes a not that on unit sales. operational. treat and commitment a we encouraged have we are that's to

in getting we're in a negotiating with partners and better Now lots of industry. position the operational, attention our we're

first So to better realistic that's on that, optimization. we can the to going I we continue unfold. pretty as than months focus but hope that's XX for do

the they specifically a before it have that this don't again, we and defined as Hot commissioning the but has They August. receiving lot waste. to schedule other that On tank we they than dates, schedule, haven't effluent, of recently very to continues exact begin DOE been commissioning, be given reaffirm anticipate summer. hot information that

have the about that tanks gallons for ready pretreated, been DFLAW. have pumped they from XXX,XXX they So

streams got go waste effluent commissioning It's then and begin they'll they're XX to so into there, tank very that. probably and And the the gets backlog get they've be And introduce they anticipated ready after definitely as different and revenue X getting we'll again over, dollars to soon to how difficult as in we define And we're coal receive beginning But start generating million rolling is each waste and from this. sustainable there's hot they'll is would treating. Once go see -- again, will be that waste sometime they QX. start in waste stream. of to going to as operational. which late spring. much several actual or DFLAW, that And to sometime increasing full we the of type in anticipate commissioning, late facility

On can't really release the outside in been the that type of I the press any do already press or in understand about protest right now. Valley, We important say of what's West period. it's anything West can't to release. discussions Valley It's

you out until an that I'd notes. protest of press the to for ongoing is put over, the mentioned information. So period as the Department refer much Energy release I pretty procurement It's that in

So we can't get into that too much.

that team, finally open to is specifically time, of And in January that's an be we've we that going that's we've came they beginning looks I we have that out 'XX. -- place It's was Enterprise, well the of very -- and of, in due right for it as that system. we're way, 'XX on very a and grouting year, DOE the available. the information speak. a competitors is X of of Along out competition. And very most strong years. also as be going the talked before, is extraction Systems like to that, period But months, a not January Xth. but before in do we is but the million The There they that On XX in now. came a have for able anticipated a large current document. that working procurement X from That's they system. it grouting positioned about $XXX very to understand couple like the Hanford got concerned, it It as believe, X was not far for procurement be what put to plan we're the type of long in published, for January as delayed will we're system document out. or this RFP said know there's actively interim past And September,

Hanford document and in kinds transition, so last really was in to which it other are with a They is they've when said project point out at the going believe than time there new just, to a And systems get what's week grouting trying whole sense all ITDC with of to begin difficult did what it's scope. different I crazy the going begin going different that of this with contract meetings through very on. over, team a taking is overall. We

about So in $XXX regards million chat, their procurement, first of goals They in crack will were year and in several looking at are have what's it's to just which and coming difficult contract. do that. going part to that But to very a small small business at in the opportunities. understand of informal just revenue -- they regards some have team the businesses on

not they're other they're waste However, do services, management. of our not space. They in types

we've So facility. our they way the be part of we in very facility a community -- big And remain on because to team. be but to have, significant we we're have our advantage out as will competed the optimistic. But before, there and a with said do

here soon So after over year. transitions as a remains seen. we'll as that of the lot sometime of And the unfold first be to

what So for. covers miss I of did asked most I Howard, anything? think that you

bit radioactive to understanding at going more than a to Hanford. be for Hanford But sent torn USS to like public didn't. that's I is material is you think and little the specific. apart a going the anybody be other you "commercial No, that's that be to treatment". else understanding there's don't My I'd Enterprise located

Yes.

defueled I a point. at different been little Howard. think that, than reactors it's The have this

state. the RFP So

somewhere go go to it where have to It a So in the Hanford. Hanford. commercial between facility necessarily can ship won't dismantled is to

seen to be go to approach in to remains not have regards that to will technical Hanford. necessarily and the So

this at question, undetermined I Did Howard? really point. answer your that's So

Yes, just X more items.

-- your opportunities I more and Mexico conference calls ago. Can specific be there? you as X little and bit Germany think discussed the That's You to a it.

did reactor with several ago. We Mexico months job Laguna Verde win in the a Yes.

I down going of And shipping. Canada, also several right there the facility as We've we think believe by well secured waste months large We're is the and first in DSSI is time waste as quarter Ridge. started And queue. part place. second start for here shipping frame quite shipment characterization could quarter already in to late continue at their expecting another we've words, it's but in our by I In reactor to into it December. as testing as now. probably to inventory a waste. other that larger the on stored Germany it's it It generating Oak we're January, through to year now, the stream some administration phase. the for But getting paperwork in put large shipments for well. us We're bump through doing complicated. X for shipping which first revenue far of ago in some -- goes, one it's next down track

on in in the 'XX, with promising but are is still of negotiation to We that begin them brokering, sometime stages. the and that summer for other looks working

notes, and million revenue in in the that QX. all said I about as So between total $X is QX

getting of we typically way. period by seen the risks for through also an that does past have address international that receipts, we've extended CR less the So it the time in

past. that we stronger expected, a in the on help QX So QX are time optimistic it and things we've will that happen that those if as support seen

from [Operator is next question coming Instructions] Spychalla Aaron of Your Craig-Hallum.

things about just kind of of of You some over thinking are you? international potential next kind first, quarters the of bit, XXXX? kind you that through near-term and challenges. handful it just just how on fourth you're for how but another like and it about Maybe the for of addressed near-term elaborate shaping just thinking and you mentioned ops quarter could understand starting sounds CR the little up you're a working some I And

going now. waste Yes. than is it's the QX, more to stable much in certainly The QX much direction It's receipts. regards better right

discussed with soft pretty well as As plants two had a of as things upgrades facility we that number a just and at planned in and before, in one came anything other seemed Richland time. Hanford we like It we coming. at or us. all with don't It won't those that are and But QX, between see issues of QX hurricanes certainly now, else we've that it. other we're really coupled mean waste issues were lot behind dealing receipts have right doesn't

And good so back its stable in one at all good the give the DSSI backlog project that been of weeks. will been we That little backlog us there. a has that's backlog next the plants. have heels a to see And we on coming regards of here couple our with bit Canadian in

will quarter. answer us the waste to is waste QX, look the get very $X enough Again, which good try your range, QX. question, get us million through we to which backlog next So receipts into for to keep in

So we're right now. there sitting

well something So good stability. any that there's again, risk now, right always some chugging looks really plants, that. pretty good pretty waste along But at of good we're on with receipts, a

are On well a as can carry waiting revenue move is mobilize. when that I in people number are sold the goes goods number with a on project as In up backlog of or do don't down. have of We bench bids the we're of down on to QX. waiting and lot other we cost words, bit down light, our a Services a with Services. little We mentioned, as side, we

the So protest be we're the in will award good field. if hoping transition always period on is all we're in we when QX pretty new it get months takes tough with work because foundation provide some to But a the stable we'll good that for that shape. this winter May. through revenue optimistic by happen on dip in hopefully working for the time, think that over, make

still was last I some us. better on with lot behind next to want most the have resources of our are big those sales to -- been But -- team. a time put all and couple now answer The ahead of kind our on lot of and keep it. So management programs, quarters we But operations PFAS revenue. a now. Does we on mentioned, investments of the have year than from on the now question, generating us. as path can we investments start those and we've definitely that metal should got of a our moving Aaron? of pedal hard. It pushing subside We your forward some. impact have of good look forward Obviously, investments spent And

just does. And for sheet. you're how and where and starting It then about just next capacity the update initiatives CapEx you second talk other just at as Can you've on there with an balance Yes. and of maybe on prepare year of feeling you're some kind the Hanford you opportunities discussed?

debt is remains is good in we're Obviously, our capital working in happy low. range. Yes, Aaron, balance The good I can address that sheet shape. The it. a

guys comes our general group, next now, pretty with spending of that's Mark's right from working comfortable with guys. the standpoint. operations kind And with we're what really R&D initiatives But of phase we're kind and the it to cap of So down numbers. a the

XXXX, that? there capacity are just at as how of and ramps mean, Richland about the just and kind I feeling Hanford -- XXXX And just you expanding

all. Yes. now, for most we problem first part us Right way in as The come any ramp have investments to we're up a X capacity that least the anticipate to position of we handle melters X those at months -- at good with those without allow that to online they're the receipts getting rolling, time make handle can and to the enough that coming. we is the

need we do of our that those facilities a pretty some we formally it online, have coming know start up, So And design ramping once melters conceptually as much and in. the invest we to making see we we'll see what complete investments. we

months more the months capabilities X, we to and continue got. add those X in XX in the we good -- after existing within going, buildings adjustments And we're summer. we start can to we've for make receiving waste like to So shape X X as see it

We able handle operational. and when cubic new. really multiple see whole be go X,XXX So equipment a to we build fully to don't see the having they're new add initially the to anything to year based to to then shifts need meters

touch Understood. can I seeing on just of maybe headlines And been Idaho. more out on think, you -- waste mentioned the transuranic then Ben, TRU you waste,

talk for broadly market. TRU you opportunity looks maybe what waste that Just that like in about with

from what TRU you Aaron, from can to Idaho, specifically referring the TRU Idaho? The on waste in waste elaborate you're

to Yes. address that. And starting of a in stream. type broadly Well, just see that just in the waste market a help positioned curious you're there to pickup how

you're of be significant Albany, waste, if as all referring more dealt funding of all beginning the a to and that's which is, TRU do Alamos, waste We they does Los specific not to lot WIPP the West or the works and -- alpha harder Mexico as what as our we're of the emitting. but we that the said, towards DOE we down waste that of closure as we lot is waste to to management. And the some a what much Hanford quantities do with, we largely we Idaho as waste and waste, as waste more amount include it expensive Carlsbad, Schenectady disposal company SPRU of at management, has have do I those little can go in a in TRU very to their off only of deal what struggling decon treat wastes waste near really struggling, that classification with, at a we New as that. can are as well waste reduce is and working remaining which volumes. facility. is is the York, different see Valley And that Richmond -- waste so and are of and backlog visibility -- of reducing left a commercial sites, their towards New generate are facility, The TRU all now, Yes. TRU right or kind TRU well call with

processing. -- commercial we the market to So of And see that's smaller the some sites couple burgeoning to that in waste for a beginning us. of a with real ship next TRU for other years especially beginning sites facility significantly growing

already now. month for a sites. of and see the backbone processing increasing and Northwest TRU it Hanford, in between our at do only million it's We a we other So $X $XXX,XXX waste plant anywhere

might then last the impact changes kind and on touch and forward? how the that of And Can for you just might maybe or moving me. Great. administration you of not some just election

Sure. in Aaron. Yes, to and that things I'd like and talking X thought other was this to colleagues lot a question, points I the and industry, some make. of our of expecting A lobbyists to couple given

seeing They the of commercialization least, at group. were brought strong And has administration important particularly [ change with of ] Secretary for what say administration to that for most is that a which our the commercialization Perma-Fix the And offer the administration. first along leaders and waste quite overall good for But us. was ones And should the grew. a point treatment First treatment is at help is Trump but Trump did and quite stable in our industry I secondly, were reason Budgets to the progress, EM/DOEM division. that waste aggressive selling because services first they levels, grow. the goals. from group Trump of is is the

that cost that to second, looking has and it capabilities that. expect and to an already to the savings buildings they're the in especially outsourcing be do for of light We permits organization for

commercialization pushing administration. be an and we offering, expect received well be that hard on very will as to new the by We

But the as So moving well for things. we I that and in think as are frightening we progress commitments see here and regulatory driven departments by looking very agreements. most those state permits that that requirements at drive always and about it on of focused of waste positively. budgets It's types are that

will broader most the those expect think we of and within that stay stable, particularly a get administration, will of commercialization good be to theme Energy. traction I Department with the new So we some

next from Investors. Aaron is coming Breakout Warwick Your question of

like Thanks there's the mentioned going discussions and today's on to detail you provided some on about for you there. ask It sounds I wanted all some the call. partnerships. PFAS,

on of it I like think hadn't be the see operational plan. deal? some discussions, that's talked, you but discussions more we you to there closing a It partners conceptual that sounds far. have would if and said could gone the what too had potentially now wondering I was just on before time maybe progressed you you last an wanting been the from those comment state now

Yes.

deployment of Let the water defining has they and of phases I And other is ones of clean leachates those. be destroy we're landfills. example TAM. A the where is concentrators. farther liquids. a that with we seem they there's me what whole you operations. good fit, so the competitors concentrate that we a talking they just other large where good they example, but up vessel are that at Aaron. volumes call partnership be But and can different large are PFAS industry with In all they They this the from water of PFAS into systems, they of appreciate give about don't released words, our developing question. the up technologies the been difficult fits end is technology like all contaminated concentrated take PFAS, And ahead contaminating everybody to knowing

so looking of is we're what concentrators, be have ones sometimes with for fractionators. There's in right PFAS working working them partnership we're them high at them. with firms to terms that send the other that developed some call So they to. those the they concentration the And now

spot destruction, sweet its system, Our market high the is concentration in destruction. complete

we highest through fabulous. water doing take concentration a do So we're very it in we or because PFAS. I It concentration a low as leachate that system and XXX,XXX mentioned, with our can't day, going gallons we're but gallons looks works it can that's run jello, the like of we form XXX like and not surface can -- to just comes well of

do some the partnering are where firms components that are out other market really have that's where So there that There's to That's we in concentrators with are. we component and operating one now. at looking there, one what concentrating doing example also partnership that alignment. that We're firms that's for with have a technologies do but also of to and just developed these that out and we're we PFAS system, companies their actually systems they treatment. type taking directly call and into going that would compliant to partnering have put of so which actually itself the support the can for foam out plants from to do their firefighting where and foam with sending of a changeouts services new foam our the the plants the that facility different system doing work, that

a can at So those we're facilities. now -- for these things And moving those operational, to receipts of at are and sustainable partnerships a together that the putting making on of we're waste forward we each one start our we high will level lead happen. types

of just business? those partnerships Are types be something would that Or be you would announcing? that those course are normal of the

it which but on we depend as as announcements that that and hope I would definitely would long with, mutually agreeable. could It align we do pursue would companies was

And you of finalized? I types just to be like when like that to it be expecting running things got be those are they every the I be guess, of if you don't for know it's looking would to what week. day

a plant comfortable? they're you said kind you're days and X be to think week, would what I to a doing it looking of feel X bigger now, right for if

little to December, like companies senior Yes, nailed at when a along, and those other but bit hoping frame, further jump hoops we're got start some you to once down with we through levels. that working in got January to get agreements there's getting time the securing

that's time we multiple unit, every in for be can efficient day. current to we the And operations shifts always we'll We go so if do we think where backlog. get that the situation. frame, hope January we're And by running the our

getting X efficient to an right January, to our to operation. done it get and making about guys, gives same tuned now working that on team the us we upgrades and system really the So all weeks of is get need

revenue production in do work to we $XXX,XXX that QX. So scale significantly through QX, we're and better a on through looking beginning at as then in a $XXX,XXX

So is going do can think kind out that for like able be to to than are gallons, is -- of limit you that's also, Or that, you this -- more to And you think potentially shift. permanently? one the I you shift then do alluded being that? run be going mean, thinking XXX of an you to get X-hour more

on thinking what's I -- things? So your would -- what are your X guess those what be

to of other of level dispose of of plant? have not it's a optimize trying In process does to a And we we in words, be -- percentage We're wastewater destruction depends on may Does options function to other injection, well there's go other other a it effluent go treatment it long. PFAS. or to way our the PFAS a lot where In Aaron. the going go or of dispose option landfill that, afterwards. If to words, what have some it's want. POTW a Or it clients into of as needs it the what deep to in destroyed.

optimization. looking So we are at that

gallons have installed to the to year. second much here will of a and it probably plant getting half to of right a efficient hoping next-generation day. in thousands now, and pretty I close it's much that Our as more hopefully and larger regards can be we're day how a the XXX said, And But do to be going into shift design on that. gallons

with any technology? any there about the still thought -- are your opportunities And Okay. licensing

with about in that. discussions interest would already initial at on it to an firms even a file This we're pursuing getting And And that's had technology and can We're large something of is. that. regards performs put first isn't certainly There good how someone certainly competition. all we've to there open-minded focused on then data in technology else's you it. very our apparent in mobile months, or support running months. location the one X, the Gen on system first. right Gen now, and and next unit efficiently X have getting getting to a as our hopefully then and or works Gen could that deployed. the We're show be one much fabricate it designed getting small -- But installed X in design consistently X that and up and first well, and we're pretty X that going focused But to

point. quickly really guys you to with gotten how this impressed I'm have Great.

So congratulations on that.

Thank you. your Aaron. appreciate support, We

Booth coming of Your ]. is Waterford [ next Holdings from Nicholas question

Just a quick question about Hanford.

low-activity gallons So it's my facility to the DFLAW all the vitrify that the understanding DOE of XX capacity lacks waste. million

to addition timeline law be? in Perma-Fix prospect just the and that some I'm of of what effluent grouting about supplemental might on curious that So the the

the Yes. capacity. received. full year million is that's appreciate I making. gallons now, an system, And And designed we've to about ]. [ X that, told, important been a as you're at point DFLAW treat that's Nicholas as Right

So to waste the tank. takes it mobilize some some in water, liquid the

about the could it that tank. X waste to of gallons takes X say literally, of get one out gallon So

efficiently So literally, depending to the tank. out the you can amount closer gallons, of how on how Hanford million is -- waste get XXX it can you at of

Now technologies for that. they're developing new

line bottom is it's only this the But change. do XX million lot million is, year. a X a to going gallons could number that And So more than gallons.

number long XXX it's to that So gallons time, gallons total. go and million million closer XXX to probably is a to going

tanks. intent manner at to to procurement through build the and what or system applaud implement the off-site to to West DOE are West is handled are the has pumping infrastructure waste of not pump area they currently their the stripping that and is grout was to by a ours. facilities, comes it, So DOE published to made send half in has about through The plumbed the a facility. the safe tank farms, DFLAW more I West support for system pumping cesium The so waste don't that which tank that the separate for that area And grouting shipping it farms program to commercial tank to once and off-site ion-exchange can the have those them which that tanks, the system, They're mentioned be that out certainly including we iodine treatment tanks at grouting. for to them in a then waste area. -- decision, pump farms extraction

we As one the local. that's we're mentioned only before,

Texas X Utah. and other are in The

majority very competition, of at the have we like other to alternatives but looking they state. make are get does ability we strong DOE and that of sure So a out waste,

what to a That that mentioned I system in spec using are We're that that [ coming -- Tisker the at place not they but system grouting several has going in that planning large they're up for tank question, for your on answer come information and And what do optimistic grouting to between opportunities system do area, interim the to online or on. whole do about find is with X year completely forward gallons gallons farms DOE procuring about ]. the will So generated DOE the Tisker million a they that gallons X which XXX,XXX I versus is that the system, ] currently is have is which that year that's alternative they're design million West where system will that [ that's by mentioned in storage. earlier system. one the now, be running. place the the It one existing years in will East they call

by at National recommended new later Sciences [ statements that's eventually administration and sooner And So I be congressional of as than the for Academy as be will well. EM/DOEM hopeful numerous Secretary lot think nominated to of and that that addressed the position by new going a that, ]. we're

[ from ], Private Gerson is question next coming who's Your Jim Investor. a

Yes.

Just was information what one. the a tax reasoning of the wondering behind so Thank for the asset write-off was. I just the far. deferred all quick you

that, and take relates ability I'll and rule, Jim. This your to it net the to subjective is use them. losses very Yes, operating a GAAP

the some asset able to company not to losses are tax the an typically suggest you're rules the company on because past back possible of those some make pretty specific look it's your X be are unfortunately, There you going we suffered that amount. If losses when that X-year not you're money, And those would familiar, was pay out. we've that reserve on on And put years has losses. as your utilize you in is and utilize different That's all a effectively. no than it you what -- asset, start reserve as reverses profits, losses of there, approach real make bad that we done time. your to the that's a the out strict money Because to utilize debt allowance. to guidance that in

the the -- doesn't company. it's now. the impact cash kind it's but paper just flow right right again, And of of in So a conservative our It really approach it's opinion, transaction.

Taylor question from next coming your Partners. Investment is And of ARS Ross

on just Mark, go want the back quick, to real I economics of PFAS.

basically product -- treat about more higher-end talking going product. to concentrated or now you're a You're a

been there's debate treatment. get it to assume gallon $XXX that would of of at would as basis on I like as this? accurate a an expectation look kind would I between gallon. talking math, So a what of per looks you you treat for kind of be getting your and somewhere When $XX you're what Is a lot you

price range seen to But for And send good right it's is question, trying hard contaminated It's in the gallon. to it for show higher or per a someone the injection gallon we're liquids not everything. $XX for a to as to incineration, much now PFAS well Ross. The palatable to $XX cost because to to $XX. Right $XX concentration, a which range, question that now, $XX is that's answer everybody, deep really general as we've performance.

So it's broad a as now. range -- it's we right really somewhere sit

very and the logistics stuff, $XX Ross, we the higher But concentrators, work showing. It concentration higher I if up the -- for that lower. And low difficult we nail high with $XX the level go the is reason to the a it big goes that low-end it, has on it'd lot get number for gets or to a up AFFF. it's -- down of So goes or full to concentration. But pickup a stuff. of -- gallon you $XX, it, because you're down, dramatically flatbed get and lot impact be as -- not a as as And math closer give can't to it's is handle. it a quantity answer it large better a with got largely volumes. number because $XX price you for full associated if is of But too. would We can a that a pallet cheaper of the

for on big completely. under go get So number grandfathered to requirements we such to destruction occurs us it's market CERCLA, rush will that get begins ready promulgates your go in this how going we concentrated and And with year. half up. hazardous to which clients When and that And anticipate occur is. thing next Ross, to places really just call of and in EPA change is do the when people, so think that up a been likely get why the when waste that's sometime it to ranges those can we altogether, clock the and the this how will happens. it market this ticking are that first starts it rates And be and

margin going Okay. would treatment? And at be run be is on to this Or then as most operating more should basis as profitable profitable an think? it you rate,

profitable on a more waste little We bit is. are than as as being most planning of our

We cost and our some margin. this for will profitable we're to are than typical purposes, the at become we're assuming finding our that more lower our this there's planning margin opportunity operation, and typical recycle of for But chemicals which using point. much resources

on made. Great. progress Okay. the Congratulations you've

for that hand appears I closing to question-and-answer Well, will management session. over of now our to be their remarks. the the back end

improvements, forward moving We in in the -- Thank us DOE. by technology on the awarded was Okay. and thank that confident remain of strategic major continued our you, projects and driving operational successful Jenny, for launch treatment today you like PFAS for joining roles the business, and for your interest one Perma-Fix. of the recently do outlook our

of our pipelines. for waste processing our the our as Additionally, lay expanding and foundation and for our shareholders providing long-term solid unfold. we support upcoming international at appreciate updates deeply with advancements and look DFLAW robust forward the together presence these further opportunities future, including to growth, positions developments Hanford, a project us and These

very So much. thank you

conclude conference. today's This very does much. you Thank

phone your You wonderful have for may lines, day. participation. your and disconnect a now Thank you